The project is part of Egypt’s Feed-in Tariff (FiT) programme for solar and wind energy projects. It will be developed, financed, owned and operated by the Egyptian Company for Solar Energy Development (ECSED) and is supported by $75 million investment.
The plant will be constructed at a site approximately 800 km south of Cairo at Benban Province in the Aswan Governorate on land allocated to Egypt’s New and Renewable Energy Authority (NREA). ECSED signed a memorandum of understanding with NREA to access the one million square metre site for conducting the required preliminary studies and technical measurements. In September 2014, Egypt set itself a series of ambitious renewable energy targets, including the installation of 2,300 MW of solar PV by 2017-18 under the FiT scheme, in addition to an ongoing solar PV tender under a build, own, operate scheme. The MoU will enable Elsewedy Electric to increase its renewable energy projects under development in the country to 650 MW. The company will also be seeking to expand its footprint beyond this across Egypt in the near future.
Once it has been completed, electricity generated by the plant shall be sold to the Egyptian Electricity Transmission Company (EETC) for $0.1434 per kilowatt.hour under a 25 years power purchase agreement guaranteed by a PPA Direct Deed with the Egyptian Ministry of Finance.
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